According to a study published by the Bank of England and Financial Conduct Authority, total lending was a quarter up on the same period last year and 19% higher than the previous three months. the increase was mainly attributed to a rise in lending to first-time buyers and buy-to-let landlords.

The value of loans advanced to first-time buyers during the quarter reached £9.9bn, an increase of £2.7bn, and was the highest quarterly figure since the end of 2007.

Buy-to-let lending during July, August and September reached £5.9bn in Q3 2013, an increase of 42% on the same period last year.

The overall value of the residential loan amounts outstanding was £1,234 billion in Q3 2013, an increase of 0.3% compared with Q2, the report said. The level of new arrears cases also fell in the same period.

The number of accounts behind on payments fell to 29,900 between Q2 and Q3 this year.